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Tuesday's strong downside rejection at 1.1540 zone and close above daily Kijun-sen (1.1567) suggests that two-legged pullback from 1.1715 (26 Oct high, the highest traded since the SNB scrapped 1.20 floor on 16 Jan 2015) has found footstep.

This could be seen as initial reversal signal which needs extension above falling hourly cloud (spanned between 1.1597 and 1.1613) for confirmation.

Further upside would then look for test of 1.1664 pivot (01 Nov lower top), break of which would expose key barrier at 1.1715.

Failure to extend recovery could result in fresh dips which could challenge another key support at 1.1500 zone, provided by top of daily Ichimoku cloud.

However, dip-buying scenario remains favored while cloud top stays intact.

Res: 1.1597, 1.1612, 1.1635, 1.1664
Sup: 1.1567, 1.1542, 1.1511, 1.1498

WTI oil extends consolidation into the second day but holds high levels around $57.00 handle after hitting the high of over two years at $57.67 on Tuesday.

Stronger pullback cannot be ruled out as strongly overbought daily studies warn. Dip below $57.00 could stretch towards next solid support at $55.16 (rising 10SMA) which is expected to ideally contain.

Sentiment remains positive on expectations of output cut program extension and rising tensions in the Middle East, which so far offsets negative impact from Chinese crude imports which fell to the lowest level in a year.

Release of API crude stocks report on Wednesday slightly disappointed on 1.5 million barrels draw, which was well below forecasted 2.7 million draw.

Traders are eyeing today’s release of US EIA weekly crude stocks which are forecasted for 2.8 million barrels draw in the past week, which could further support oil price on results at/ above forecasted figure.

Res: 57.13, 57.67, 57.99, 59.04
Sup: 56.79, 56.22, 55.64, 54.16

The Australian dollar is higher on Wednesday, bouncing from dangerous zone at 0.7625 (27 Oct low), which was retested on Tuesday’s strong fall.

Weaker US dollar offered relief for the Aussie, with larger downtrend from 0.8124 high taking a breather above strong support at 0.7630 zone (Fibo 61.8% of 0.7328/0.8124 rally, reinforced by weekly 55SMA) before bears resume.

Today’s action was so far capped by falling 10SMA (0.7672), which should ideally limit upside attempts.

However, extended upticks are expected to stay under 200SMA (0.7697) and keep bearish structure intact.

Eventual break and close below 0.7630 zone would generate bearish signal for extension towards targets at 0.7572/35.

Res: 0.7672, 0.7697, 0.7729, 0.7747
Sup: 0.7625, 0.7572, 0.7535, 0.7500

The euro has inched lower in the Wednesday session. Currently, EUR/USD is trading at 1.1566, up 0.08% on the day. There are no major events in the eurozone or the US, it could remain a quiet day for the euro. France posted a trade deficit of EUR 4.7 billion, which matched the estimate. On Thursday, Germany releases Trade Balance and the US publishes unemployment claims.

Eurozone retail sales rebounded sharply in September, pointing to an improvement in consumer spending. The gain of 0.7% came after two straight declines, and was the strongest gain since February. The markets are hoping for strong euorozone consumer spending in the fourth quarter, given the robust German economy and stronger economic conditions in the eurozone.

German coalition talks appear to be closer to a breakthrough, as Angela Merkel’s conservative bloc and two small parties have managed to narrow gaps on taxation climate control and immigration. The parties started exploratory talks on Tuesday, and Merkel could have a government in place in December.

After failing to pass a new healthcare act, President Trump has his sights set on tax reform, a key item in his domestic platform. Trump wants Congress to pass legislation overhauling the tax code before the end of the year, but that could prove to be too tight of a deadline. Most Democrats have come out against the proposal, and not all Republicans are on board. The bill would cut corporate taxes from 35% to 20%, but predictably, Democrat and Republican lawmakers are at odds as to whether the bill will lower taxes for the middle class. The bill is presently being debated in a congressional committee and is expected to move to the House floor next week. The Senate will present its version of the bill on Thursday, so we can expect plenty of activity in Congress in the next few weeks. Expectations that Trump will cut taxes has been the catalyst for a stock market rally over the past year, and if the bill does become law, the US dollar will likely gain ground.

Crude oil has surged and set up a new resistance at 57.58 (07/11/2017 high). The commodity is trading at 1-year high. Expected to show further shot-term bearish consolidation. Indeed the technical structure has a history of decent consolidation phase.

In the long-term, crude oil has recovered after its sharp decline last year. However, we consider that further weakness are very likely. For the time being the pair lies in an upside momentum. Strong support lies at 35.24 (05/04/2016) while resistance can now be found at 55.24 (03/01/2017 high)

Silver is heading higher. Hourly support can be found at 16.60 (27/10/2017 low). Hourly resistance is given at 17.46 (13/10/2017 high). Additional support can be found at 16.13 (06/10/2017 low).

In the long-term, the trend is rater negative. Further downsides are very likely. Resistance is located at 25.11 (28/08/2013 high). Strong support can be found at 11.75 (20/04/2009).

Gold remains weak. The technical structure confirms a longer consolidation phase. Support lies at a distance at 1251 (08/08/2017 high). Resistance is now located at 1288 (20/10/2017).

In the long-term, the technical structure suggests that there is a growing upside momentum. A break of 1392 (17/03/2014) is necessary ton confirm it, A major support can be found at 1045 (05/02/2010 low).

Bitcoin is now consolidating after setting-up a new all-time high for 4 consecutive days. The technical structure shows a tremendous positive short-term momentum. Hourly support can be located at 6027 (30/10/2017 low). Strong support stands very far at 2975 (22/08/2017 low). In the short-term, the digital currency should continue rising.

In the long-term, the digital currency has had an exponential growth. There are decent likelihood that the asset will reach $10'000.

EUR/CHF is back within former uptrend channel. Support is given at 1.1610 (27/10/2017 low). Rising channel suggests further bullish momentum.

In the longer term, the technical structure has reversed. Strong resistance is given at 1.20 (level before the unpeg). Yet, the ECB's QE programme is likely to cause persistent selling pressures on the euro, which should weigh on EUR/CHF. Supports can be found at 1.0184 (28/01/2015 low) and 1.0082 (27/01/2015 low).

EUR/GBP is way into a short-term bearish momentum. As long as prices are below the resistance at 0.9046 (05/09/2017 high), the shortterm technical structure is biased to the downside. Hourly support is given at a distance at 0.8733 (01/11/2017 low).

In the long-term, the pair has largely recovered from recent lows in 2015. The technical structure suggests a growing upside momentum. The pair is trading above from its 200 DMA. Strong resistance can be found at 0.9500 (psychological level).